Asset based finance for small to medium businesses

Making It Through The 1st Year of Your New Business

It is unrealistic to assume that once you have set up your business all the hard work is over! The fact remains that more than 50 percent of new businesses die out in the first year. This is true for businesses throughout the world including in New Zealand. This probably gives you an idea as to how difficult it is to get through the first year of your business.

If you run a business in Auckland or the Waikato here is a rundown of what you could do to help your business through the 1st year:

1. Stick to your business plan: Remember don't try to do anything out of the box. You need to play it safe during the initial times of your business. Follow your original business plan as much as you possibly can.

2. Rein in your spending: Most new businesses fail because of a shortage of money. So, to ensure that isn't your fate adopt an economical approach. Try not to spend any money until your products have been manufactured and put into the market space. Use contracted employees and hire people only when you desperately need them. Try and use a small office or work from home as office costs can also spiral out of control very quickly.

3. Try and reinvest your share into the company itself: While it is difficult to forego the benefit of a salary you could consider putting money back into the business rather than taking a pay cheque yourself. Remember, you might not be in a position to earn anything during the first year of your setting up the business.

4. Hyperactivity and productivity are not the same: Don't invest too much money and time on things that you are not sure about. Still to the core business objectives and don't be too experimental in the first year.

5. Focus on customer service: While your product might be fantastic, remember that it will count for nothing if the customer is not satisfied. So, spend your time and efforts focusing on delivering the best customer service possible. This will not only keep your customers coming back to you and recommending you, but it will make you stand out from your competitors.

6. Increase your network: A business typically depends on building relationships. Don't shy away from building more trusted contacts. You never know who could be a potential customer, investor or mentor.

7. Try and improve your assets and machinery: Remember that your productivity will largely depend on the quality of equipment and machinery that you install. If you don't have the money to set up your business with the best equipment then visit an Auckland or Waikato asset finance company to help you fund your equipment & machinery set up costs.

8. Check your status and react: Make an analysis of how your business is running and make modifications if required. It is necessary to make periodic checks at times to adapt to the changing dynamics of the market place. The market will decide your future plans so make sure you are on the ball to changes in your industry.

If you are looking for some help to finance some additional machinery or equipment for your Auckland business visit the GVK Finance website at: www.gvkfinance.co.nz. They provide medium down to small business loans to enterprises across New Zealand.